Islamic Bank Essay

6658 WordsMar 1, 201527 Pages
Determinants of growth of Islamic Retail Bank in Pakistan Shahid Mohammad Khan Ghauri Retail Banking Faysal Bank Limited Lahore, Pakistan Kashif Javaid Retail Banking MCB Bank Limited Lahore, Pakistan Dr. Muhammad Ramzan Professor of Research Lahore University of Management Sciences Lahore, Pakistan ABSTRACT Purpose: to explore the determinants of growth of Islamic retail banking in Pakistan, and is tested in Pakistan. Design/methodology/approach: The quantitative methodology is adopted for completion of this paper, through three-fold approach. In first method, growth of Islamic banks is compared with conventional banks through financial statements key statistics for a period of recent three (3) years; in second method an instrument is used through customers of Islamic retail banks and their perspective is assessed; and in third methodology, another instrument is used through bankers of Islamic retail banks. Findings: Our findings include good bank spread, customers’ perspective of good returns on deposits and better services, part from religious cause of trend for Islamic retail bank; banks’ perspective of better Islamic alternate to retail banking needs. Research limitations/implications: Study is conducted in Pakistan only. It may expand by including more variables into research. Practical implications: Practical implication of this paper may relate to the policy makers in Islamic banks for development of products as per customer needs and demands. Originality/value: To devise better policy related to growth and expansion of Islamic banking in emerging economy. Keywords: Islamic banks, Retail banks, Bank spread Article Classification: Research paper Introduction Islamic banking is the stream of banking based on principles laid down by Shariah guidelines. This stream of banking was emerged in 1950 in Pakistan through establishment of a cooperative bank in a
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